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Consumers don't want proposed new taxes
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Consumers don't want proposed new taxes




Denise Ellis doesn't think she ought to pay tax on what she says is the one fun activity many people have left in Wilson.

Ellis was at Carmike Cinemas Thursday night with her family to catch a pre-weekend flick, but the 38-year-old Wilson resident said she is worried that the theater's fortunes would flounder if the state follows through on a tax system overhaul that could add a sales tax to movie tickets.

"They're closing down the bowling alley right now, so there's basically nothing left to do in Wilson," Ellis said.

As N.C. Senate Democrats pitch a plan to overhaul the state's tax system that would lower state income and sales taxes, critics are concerned about the plan's proposal to add sales taxes to movie theater and concert tickets, home and auto repairs, installations and warranties and other services.

The overhaul, unveiled Wednesday, will modernize the tax system and generate an extra $1.2 billion by 2011 to fix a state budget hole, supporters of the plan argue.

Ellis and other theatergoers at Carmike Cinemas Thursday night, however, said the proposal's addition of the sales tax to their tickets wasn't something they were happy about. Several people said it just adds to the tax burden placed on them in a difficult economic period.

Pam Hawley, 49, of Lucama, said movie theaters charge a lot for tickets and concessions, and that the tax would add to that cost.

"I really don't think they should do that," Hawley said of taxing movie theater tickets.

Cheryl Taylor, 61, and her husband Bill, 63, who were passing by the theater browsing movie posters, said they too felt the proposal to add new sales tax categories is unnecessary.

Cheryl Taylor said the state doesn't seem to spend its income properly now and cited Gov. Perdue's decision to raid the N.C. Education Lottery fund to help fill the state's projected revenue shortfall.

Theatergoers aren't the only ones upset about the proposal.

Business owners around Wilson and in the area who provide services that would be taxed under the proposal said their customer base will lighten.

Doug Best, manager of Jackson Moving & Storage in Rocky Mount, which gets much of its business from Wilson, said his business is linked with the housing business, which has generally slumped nationwide. He said that he and other movers and subcontractors will face yet another obstacle if the proposal becomes law.

For him, there's only one way to cut costs if this pushes him to do so.

"We would have to look at ways to cut costs, and a lot of times that means cutting a person," Best said.

David Moore, co-owner of Moore's Body Shop in Wilson, said most of his customers are involved in vehicle accidents and are insured, but that occasionally he gets someone looking for a paint job or other upgrades.

He said the change will likely hurt customers with little to no insurance and increase paperwork for his office with the new regulations.

"I don't agree with it at all," he said.

avelarde@wilsontimes.com | 265-7868



A NEW TAX PROPOSAL

N.C. Senate Democrats have proposed a plan to overhaul the state's tax system that would cut income and sales taxes but apply the sales taxes to more services. Here are some of the proposal's highlights:
  1. The total sales tax rate people pay in most counties, including Wilson, would be cut from 6.75 percent to 6 percent.

  2. Sales taxes would apply to a host of new items like movie tickets, concert tickets, home and auto repairs, digital products bought in-store, installations and warranties.

  3. The top individual income tax rate would drop from 7.75 percent to 7.5 percent, while the lowest would drop from 6 percent to 5.25 percent. A new income bracket would also be created where income earners would pay no new taxes.

  4. Cigarette taxes would be raised by 15 cents per pack, and alcohol excise taxes would also increase.

  5. Income taxes would be based on a adjusted gross income rather than federal taxable income.

  6. Deductions would be eliminated and replaced by various credits for mortgages and charitable donations.

  7. The plan expects to generate at least an extra $1.2 billion in revenue by 2011
Source: Wire Reports
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View Comments:Show/Hide(3 comments)
smoker said...

How does it feel? I am glad about it.

Monday, April 27, 2009 at 6:05 AM
Joy said...

I think it sucks, however, these are decisions made by the ones most people voted for. If they made educated votes they would have known this would likely happen

Saturday, April 25, 2009 at 2:47 AM
Wiltson said...

Who is it that wants to raise everyones taxes? Oh yeah the Democrats. What's new with that? And people keep right on voting for them... We pay too much tax now, and it's not spent wisely. THATS the problem.

Friday, April 24, 2009 at 12:03 PM
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